Apple Movie Rentals (and Macworld thoughts)

RentalsLike I do with every Apple iTunes new feature, I buy immediately to help promote the format. The introduction of Movie Rentals is no different…

If you rent a movie through iTunes, a new source appears in iTunes “Rented Movies”. I decided to watch Pirates of the Carribean (one of our portfolio companies’ software has been used in the various Pirates films). Seeing rentals at $2.99 makes me wonder what the cost of delivery and infrastructure is for a circa 2GB file? Is Apple making any money on the rental? If any one knows the economics, please post in the comments.

The other main highlight for me was Time Capsule. I’m a backup fanatic (ever since I had 3 mac laptops stolen in one fell swoop), and Time Capsule will really simplify my backup strategy. 1TB of storage sitting in our closet ticking away… well done Apple!

2 thoughts on “Apple Movie Rentals (and Macworld thoughts)

  1. My company (delivering a few TB per month) is paying around 50 cent per GB… and you should be able to get a lot lower prices in the ridiculous volumes iTunes must be serving. So there’s at least US$2 left after bandwidth.

    And it’s not exactly free to have video rental stores on every corner either.

    d.

  2. David

    I saw a break-down of a $0.99 iTunes music download yesterday. Apple’s take is approximately $0.12, or 12%, before costs.

    If Apple retains a similar percentage of iTunes movie rentals, then their revenue is $0.48. At 50 cents per GB, they can’t be making money on this…

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